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List of collection agencies in South Dakota
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Debt Collection Laws in South Dakota
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Fair Debt Collection Practices Act (FDCPA): Like all states, South Dakota is subject to the federal Fair Debt Collection Practices Act. The FDCPA applies to third-party debt collectors and prohibits them from using deceptive, abusive, or unfair practices when collecting a debt.
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South Dakota Laws: South Dakota does not have a state-specific debt collection law analogous to the FDCPA. Therefore, consumers in South Dakota mainly rely on the federal FDCPA for protections against abusive debt collection practices.
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Statute of Limitations: In South Dakota, as of 2021, the statute of limitations for written contracts is 6 years, and for open accounts (such as credit cards) and oral contracts, it is also 6 years. Once this period has passed, debt collectors cannot sue to collect the debt. Note that acknowledging the debt or making a payment can restart the statute of limitations.
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Wage Garnishment: In South Dakota, if a creditor obtains a judgment against a debtor, they may be able to garnish wages. Federal law limits garnishment to the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage, and South Dakota generally follows these limits.
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Bank Account Levies and Property Liens: After obtaining a judgment, a creditor may seek to levy a debtor’s bank account or put a lien on property. However, South Dakota law provides certain exemptions that may protect a portion of the debtor’s assets.
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Communication with Debt Collectors: Under the FDCPA, debt collectors are subject to restrictions on their communication practices. For example, they cannot contact debtors at inconvenient times, harass them, or communicate with third parties about the debtor’s debt without permission.
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Exemptions: South Dakota law provides various exemptions to protect a debtor’s property from being seized to pay a judgment. This includes exemptions for homesteads, personal property, wages, and certain types of income such as social security and retirement benefits.
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Licensing: Debt collection agencies operating in South Dakota are required to be licensed.
Because laws can change and the information I provided may no longer be accurate, it is important to consult a lawyer or legal aid organization to get the most current information and advice on dealing with debt collectors in South Dakota.
Debtors have 30 days to request validation of debt, all collection activity must pause till these documents are provided to the debtor by a collection agency.
The largest cities in SD are Sioux Falls, Rapid City, Aberdeen, Brookings, and Watertown.